UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 40477 / September 24, 1998
Administrative Proceeding
File No. 3-9723
PUBLIC PROCEEDINGS INSTITUTED AGAINST ROBERT J. MELEDANDRI, JR.
The Securities and Exchange Commission ("Commission") has
instituted public proceedings against Robert J. Meledandri, Jr.
("Meledandri") of Coopersburg, Pennsylvania pursuant to Section
8A of the Securities Act of 1933 ("Securities Act") and Sections
15(b), 19(h) and 21C of the Securities Exchange Act of 1934
("Exchange Act").
The Commission's Order Instituting Public Proceedings
("Order") alleges that from November 1996 through February 18,
1997, Meledandri, while employed by the Allentown, Pennsylvania
Branch Office of Prudential Securities, Inc., violated Section
17(a) of the Securities Act and Section 10(b) of the Exchange Act
and Rule 10b-5 thereunder, by executing unauthorized transactions
in customer accounts and by fraudulently soliciting funds from a
customer. The Order alleges that Meledandri executed
approximately 55 transactions in nine customer accounts without
the customers' knowledge or consent. The Order alleges that, as
a result of these unauthorized transactions, Meledandri's
customers suffered losses in excess of $500,000, and that
Meledandri earned commissions of $4,466.17. The Order also
alleges that Meledandri solicited $20,000 from a customer to
purchase a so-called tax-free bond, purportedly being issued by a
company called Cetronia Holdings ("Cetronia"). The Order alleges
that the bond did not exist, and that Meledandri failed to
disclose to the customer, among other things, that Cetronia was
owned by Meledandri and his wife. The Order further alleges that
Meledandri misappropriated the $20,000 and used it for his
personal expenses.
A public hearing will be scheduled to determine whether the
Commission's allegations against Meledandri are true, and if so,
whether any remedial action, including the issuance of a cease-
and-desist order, is appropriate and in the public interest.